Merton Electronics operates two retail outlets in Port Wren, one downtown and the other in Docklands. The stores share the use of a corporate staff responsible for functions such as personnel, IT, marketing, purchasing, and so on. The cost of the corporate activities for last year was $307,800. The following are the operating results for the two stores for the year:

	Downtown	Docklands
Sales revenue	$ 726,480	$ 908,100
Number of employees	45	30

Required:

Allocate the cost of the corporate activities to the two stores based on:

Number of employees.

Store revenue.

(Do not round intermediate calculations.)

Answer rating: 100% (QA)

Allocating corporate costs based on number of employees First we need to calculate the total numb... View the full answer